Bit Brother Ltd BETS shares are trading lower by 55% to $0.031 Tuesday afternoon after the company announced a deal to sell $12.0 million worth of Class A ordinary shares, Class D warrants and Class E warrants to accredited investors through a registered direct offering.
The offering comprises 184,615,385 Class A ordinary shares, paired with respective Class D and Class E warrants, all sold at $0.065 per share and associated warrants.
The terms allow immediate exercise of Class D warrants for five years at $0.06 initially, subject to adjustments after 30 days, and Class E warrants for two years at $0.13 initially, both offering cashless exercise options.
See Also: Bitcoin Blasts Past $42,000
To avoid share price drops below $0.01 for five consecutive days, a reverse split was agreed upon. The company estimates $12.0 million in gross proceeds pre-deduction of fees and expenses. The offering's closure is expected around December 8, pending customary conditions, with Maxim Group LLC acting as the sole placement agent.
According to data from Benzinga Pro, Bit Brother has a 52-week high of $0.66 and a 52-week low of $0.021.
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